BBA_SEM-3_RURAL MARKETING_u-5

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2 RURAL MARKETING STRATEGIES www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

INTRODUCTION 3 • With the increase in population and with the increased target groups undifferentiated products for an undifferentiated market is a thing of the past. • Initially, marketers in India concentrated on segmenting the urban market only as it contributed to 75% of the revenue. With the saturation of the urban market in recent years and the growing demand in rural markets simultaneously, the need to segment the market is being felt increasingly. • As economies evolve, consumer choice and requirements become more focused. This calls for Segmenting, Targeting and Positioning (STP). www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

4 Decision Actions Segmenting Targeting • Identifying various bases for segmenting markets • Developing profiles of market segments Positioning • Evaluating the market segments for their attractiveness • Deciding the market coverage strategy • Identifying a set of possible competitive advantages of the brand • Selecting the right competitive advantage • Communicating the chosen competitive advantage to the target customers. www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

SEGMENTATION 5 Segmentation is the process of dividing a heterogeneous market, into several sub-markets or segments, each of which tends to be homogeneous in all significant aspects. According to Philip Kotler, “Market Segmentation os dividing a market into distinct groups of buyers who have distinct needs, characteristics, or behaviuor and who might require separate products or marketing mixes. www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

SEGMENTATION 6 Market Segment • A group of consumers who respond in a similar way to a given set of marketing efforts. • Market Segments helps distinguish one customer profile from another within a given market. • Segmentation facilitates in understanding the needs of target buyers. www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

SEGMENTATION 7 75% of people in rural India are engaged in agriculture, but they cannot all be clubbed under one omnibus category of farmers. There are; • large farmers, • medium farmers, • small farmers, • marginal farmers and • agricultural labourers Their income levels, lifestyles and behaviour are different from each other. www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

SEGMENTATION 8 Heterogeneity of the Rural Market: There are a number of factors that display the heterogeneity of the rural market; • Socio-cultural differences across regions • Variation in population size and population density • Difference in levels of infrastructural development • Variations in literacy levels • Differences in income levels and patterns of income flow • Family structure www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

SEGMENTATION 9 Degrees of Segmentation: • Mass Marketing Considers all customers homogeneous. • Segment Marketing Identifies customers as different groups • Niche Marketing Serves selectively one or a few customer groups • Micro Marketing Focuses on individuals or very small groups • Local Marketing • Individual Marketing www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

SEGMENTATION 10 • Geographic Segmentation • Regions • Village population and density • Culture • Demographic Segmentation • Age & Life Cycle • Family Structure • Income • Landownership • Occupation • Education and House Type • Religion & Caste www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

SEGMENTATION 11 • Geographic Segmentation • Regions • Village population and density • Culture • Demographic Segmentation • Age & Life Cycle • Family Structure • Income • Landownership • Occupation • Education and House Type • Religion & Caste www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

SEGMENTATION 12 • Psychographic Segmentation • Social Class • Lifestyle • Behavioural Segmentation • Occasions • Benefits Sought • User Status • Usage Rate • Loyalty • Place of Purchase www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

PRODUCT STRATEGY 13 For transferring a marketing strategy into a marketing program the marketer needs to decide on the Marketing Mix that is to pursue the marketing objective in the rural market. Product Concepts and Classification: A marketer should keep the following aspects ion mind while taking the products to rural markets. Products intended for rural markets should be: 1. Simple 2. Easy to use 3. Visually identifiable 4. Affordable www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

PRODUCT STRATEGY 14 For transferring a marketing strategy into a marketing program the marketer needs to decide on the Marketing Mix that is to pursue the marketing objective in the rural market. Product Concepts and Classification: A marketer should keep the following aspects ion mind while taking the products to rural markets. Products intended for rural markets should be: 1. Simple 2. Easy to use 3. Visually identifiable 4. Affordable www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

PRODUCT STRATEGY 15 Small size packings - low per capita, non availability of regular pay forces the rural consumer to buy small packets of various products • Low priced product • Rough, tough and loud • Usable products • Brand image www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

PROMOTION STRATEGY 16 • Mass Media (Radio, Cinema, Press And TV) • Local Media (Haats And Melas, Wall Painting, Leaflets, Video Vans, Folk Media, Animal Parade) • Personalised Media Includes Direct Communication, Dealers, Sales Persons And Researches • By Promoting Products With Indian Models And Actors www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

PRICING STRATEGY 17 • Low Pricing • Cost Saving In Packing-ordinary Packing Etc.. • Conversions www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

DISTRIBUTION STRATEGY 18 Distribution Channel Includes: • company depot • Redistribution stockiest, clearing agents • Semi wholesalers and retailers • Itinerant traders, Vans, Sales people, NGOs and garment agencies www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

19 REFERENCES 1. Kashyap, Pradeep, Amp, Raut, Siddhartha, Rural Marketing, Wiley, New Delhi 2. Krishnamacharyulu, C.S.G and Rama Krishnan Lalitha, “Rural Marketing – Text and Cases”, Pearson Education, New Delhi. www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL

20 THANK YOU www.cuidol.in Unit-1(MAP-607) All right are reserved with CU-IDOL